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 In Today's eHay Weekly
 October 28, 2008

A Better Year For Southeastern Growers
Forage Heat Damage Research Summarized
Times Call For Management Fine-Tuning
Clemson Switchgrass Research Under Way
Trade Group Backs Organic Pasture Rules
State & Regional Reports: Ohio, Manitoba
Ag Insurance Workshops Are Next Week
Calendar Of Events
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Top Of The News

A Better Year For Southeastern Growers
No doubt about it. Hay production in the southeastern U.S. improved greatly this year over 2007. Even so, pockets of the region still face shortages. “Last year was just plain dire,” says Dennis Hancock, University of Georgia extension forage specialist. “By comparison, this year was much better. But relative to a normal year, we’re still behind. The hay-supply situation in some areas this winter could be as tight and maybe even tighter than it was last year.”

Growers in the northern part of the state are suffering most. “They were hit hard by drought again this year,” says Hancock. “For a lot of people, it will be difficult to handle this two years in a row.”

Crop producers aren’t baling crop residue as they did a year ago, which adds to this year’s shortfall in some areas. “That helped fill in the gap last year,” admits Hancock. “But with fertilizer prices up 50% or more this year, the crop guys are more hesitant to bale it up. Higher fuel costs this year will also make it more difficult to truck that baled residue around the state.”

Hay growers in Alabama are in “infinitely better shape” than they were a year ago, says Don Ball, Auburn University extension forage specialist. “Overall, we had reasonably good hay production, and some people were able to produce more hay than they needed. But it does vary because the rains we had were not equally distributed. Some people will need hay.”

Hay supplies in western Tennessee are also spotty, says Brian White, University of Tennessee extension beef and forage specialist. “In parts of our area, people were able to make a pretty good hay crop,” he says. “A lot of people were able to replenish their hay stocks. But you go 50 miles away and it changes dramatically. Some people have had a tough, dry year. It really depends on whether or not you caught the summer rains.”

Georgia’s Hancock urges livestock producers to buy only tested hay, if possible. “Last year, a lot of the hay that was sold was of very, very low quality,” he notes. “So it required a lot of supplementation when it was fed to cows. If you have to pay $5 or $10 more for better-quality tested hay, you’ll come out ahead.”

“Hay is more expensive and valuable than it used to be,” adds Ball. “With inputs like fertilizer and fuel going up so much, having hay tested will pay even more than it used to.”

White also encourages livestock producers to weigh hay before buying. “For whatever reason, a lot of hay in the Southeast is bought and sold by the bale,” he says. “The problem is that one bale will weigh 600 lbs, while another might be 1,400 lbs. Buying and selling by the ton is definitely the way to go.”

To contact Hancock, phone 706-542-1529 or email dhancock@uga.edu. Reach White at 731-968-5266 or dwhite3@utk.edu, and Ball at 334-844-5491 or balldon@auburn.edu.




Forage Heat Damage Research Summarized
A fact sheet summarizing recent research on how heat damage affects forage quality is available from University of Wisconsin Extension. The publication, titled Heat Damaged Forages: Effects on Forage Quality, was authored by Wayne Coblentz of the U.S. Dairy Forage Research Center and Pat Hoffman, University of Wisconsin extension dairy specialist. To download the fact sheet, go to www.uwex.edu/ces/crops/uwforage/HeatDamage-FOF.pdf on the UW’s Team Forage Web site.



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Times Call For Management Fine-Tuning
With credit markets tightening everywhere, it’s more important than ever for farmers and ranchers to polish their management skills, says Texas A&M extension ag economist Danny Klinefelter. Among his suggestions for operating in tough financial times:
  • Emphasize liquidity. “Make sure inputs generate sufficient income to justify the expense,” says Klinefelter. “Remember, maximum profit and maximum yield are not the same thing.”
  • Shore up loans. This encompasses long-term loans (land and other real estate), intermediate loans (equipment) and short-term loans (operating expenses). “Make sure you’ve got your debt structured correctly,” he says. “It may be good insurance to convert some short-term debt to a fixed-rate loan amortized over five years, even if it’s at a higher rate. The objective is to improve your working capital position and to become more flexible. You don’t want to get caught with a lot of carryover operating debt for the next year.”
  • Evaluate alternative business models. Consider joining forces with other producers to gain access to expertise and economies of scale, advises Klinefelter. “Producers could form an LLC (limited liability company) or a closed cooperative to combine their buying power or to spread the cost of acquiring greater technical expertise or risk management,” he says.
  • Delay significant capital purchases. “Deleveraging is another option to keep in mind,” Klinefelter says. “Right now, unless farmers really get a good deal, they don’t want to be going out and overcommitting themselves.”
What are you doing to tighten up your management practices? Let us know or comment on the article by clicking on the icon, then scroll to the end of the story.




Clemson Switchgrass Research Under Way
Clemson University is launching a $1.2 million bioethanol research project to find the best way to produce plant-based fuels in the southeastern U.S. It’s funded by a grant from the U.S. Department of Energy (DOE). The purpose of the project, which will also involve DOE’s Savannah River National Laboratory in Aiken, SC, is to assess the potential of switchgrass and sweet sorghum as feedstocks that can be processed into ethanol. The grant will also fund development of a small-scale biofuel processing plant at Clemson’s Restoration Institute in North Charleston, SC. For more on switchgrass research at Clemson, go to agroecology.clemson.edu/switchgrass/sg.htm.



Trade Group Backs Organic Pasture Rules
The Organic Trade Association (OTA) has given thumbs up to proposed USDA rules aimed at clarifying issues related to organic pasture requirements. USDA released the suggested regulations last week. OTA says the proposal is in the spirit of practices that most organic farmers have been using on their lands for years. OTA also notes that, under the proposal, “current regulations that prohibit organic farmers from using genetically engineered growth hormones, antibiotics, irradiation, sewage sludge and cloned animals remain in place, as do requirements that organic farmers build healthy soil without the use of toxic and persistent pesticides and fertilizers, and certification for all but the smallest farms.”

USDA is accepting public comments on the proposed regulations until Dec. 23. To read the regulations, go to the National Organic Program Web site at www.ams.usda.gov/nop.




State & Regional Reports: Ohio, Manitoba
Ohio
Even with increased production for both alfalfa and other types of hay this year, livestock producers in Ohio could find themselves hard-pressed to find hay this winter, says Mark Sulc, Ohio State extension forage specialist.

According to a recent report from the state’s ag statistics service, alfalfa production in Ohio this year was up by 20% over last year’s figure, while production for other types of hay was up 27%. The problem, says Sulc, is that hay stocks coming out of the winter were extremely low. “Last year was just plain rough all the year around,” he says. “People came into this year with nothing for hay.”

An extreme dry spell, starting in early July and continuing through the end of the growing season, compounded the problem. “It was one of the driest Julys on record in many parts of Ohio, and we didn’t get a lot of rain after that,” Sulc says. “As a result, many producers are already feeding hay to cows on their pastures and have been for quite some time.”

Sulc also notes that, while first-crop alfalfa yields were high, putting up high-quality hay was difficult. “A lot of that first cutting had to be put up between rain showers and the quality suffered accordingly,” he says. “Later in the year, because it was so dry, a lot of people weren’t able to get a fourth cutting like they would in a more normal season. The demand for top-quality dairy hay will remain high.”

To reach Sulc, send an email to sulc.2@osu.edu or phone 614-292-9084.

Manitoba
Compared to the last three years, hay yields this year were way up for Dave Henry and his dad, Harley, Rossendale, MB. One indicator: Toward the end of their second cutting, the hay-making team ran out of tarps for covering their product. “At first, we thought maybe someone had stolen them,” says Dave. “But when we did a count, they were all there.”

The Henrys put up 600 acres of alfalfa and alfalfa-grass hay in two to three cuttings annually. The hay is packaged in 3 x 3’ medium square bales.

While quantity was up this year, quality was off a touch. “Normally, we look for a relative feed value of 140-150 on our second cutting,” says Dave. “This year, though, it was more like 120-130 even though it looked good and had some nice color to it.”

Weather was likely a key factor. “We were late getting started on the season because of rain,” he says. “Then as the summer went on, we didn’t have a lot of warm weather, just one or two days where the temp was above 75 degrees.”

The Henrys use a Winnipeg-based broker to market their hay. “He takes care of lining up buyers, having the hay tested and arranging for trucking,” says Dave. “We have plenty of other things to do.”

He figures about 90% of their hay is sold in the U.S. The primary markets are dairy and beef operations. Last year, they also sold to horse owners in Tennessee and Virginia. The Henrys can be contacted by phone at 204-252-2345 or 204-252-2128.




Events

Ag Insurance Workshops Are Next Week
Land-grant universities in Kansas, Colorado and Nebraska are teaming up to help answer questions on crop and livestock insurance under the latest farm bill. Their insurance workshop, titled “Meeting the Risk Management Challenges of a New Farm Bill and New Price Relationships,” will be presented Nov. 4 in Brush, CO; Nov. 5 in Grand Island, NE; and Nov. 6 in Salina, KS. According to organizers, the workshop is designed for growers, ranchers, crop insurance agents, ag lenders and others who want to enhance their knowledge of risk management and their ability to design appropriate risk management plans for their farms/ranches or provide risk management advice to clients. Presentation topics will include the new farm bill; using ACRE in a risk management plan; and pasture, range and forage policy updates.

More information is available at cropinsure.unl.edu (click on Workshop Registration) or by phone at 800-535-3456.




Calendar Of Events
Oct. 31-Nov. 2 -- Virginia Equine Extravaganza, Richmond Raceway, Richmond. Learn more at www.equineextravaganza.com.

Nov. 6-7 -- 2008 BEEF Quality Summit, sponsored by BEEF magazine, Antlers Hilton Hotel, Colorado Springs, CO. Visit beefconference.com/.

Nov. 12-13 -- Oklahoma Biofuels Conference, Skirvin Hotel, Oklahoma City. For more details, visit www.GrowOK.com or phone 800-203-5494.

Nov. 13-16 -- Massachusetts Equine Affaire, Eastern States Exposition Center, West Springfield. Visit www.equineaffaire.com.

Dec. 2-4 -- California Alfalfa & Forage Symposium And Western Alfalfa Seed Conference, Town & Country Resort and Hotel, San Diego. Learn more at alfalfa.ucdavis.edu/+symposium/2008/.

Dec. 5-6 -- 2008 Missouri Livestock Symposium, Kirksville. Programs for horse, beef cattle, sheep, meat goat and forage producers, and trade show. Details at missourilivestock.com or call Bruce Lane at 660-665-9866 or Garry Mathes at 660-341-6625.

Jan. 6 -- Delmarva Hay & Pasture Conference, Delaware State Fairgrounds, Harrington. Contact Les Vough, 301-405-1322 or vough@umd.edu.

Jan. 7 -- Southern Maryland Hay & Pasture Conference, Izaak Walton League Outdoor Education Center, Waldorf. Contact Les Vough, 301-405-1322 or vough@umd.edu.

Jan. 8 -- Tri-State Hay & Pasture Conference, Location TBA. Contact Les Vough, 301-405-1322 or vough@umd.edu.

Jan. 15-16 -- Southwest Hay And Forage Conference, Ruidoso, NM. Contact Gina Sterrett at 575-626-5677 or Justin Boswell at 575-840-9908.

Jan. 21-22 -- Heart Of America Grazing Conference, Columbus, IN. Contact Jason Tower at 812-678-4427 or towerj@purdue.edu.

Jan. 27-28 -- Joint Annual Meeting/Symposium Of Midwest Forage Association, Wisconsin Custom Operators And Professional Nutrient Applicators, Chula Vista Resort, Wisconsin Dells, WI. Go to www.midwestforage.org.

Feb. 3-4 -- Idaho Hay And Forage Conference, Burley. Call Glenn Shewmaker at 208-736-3608.

Feb. 3-4 -- Mid-America Alfalfa Expo, hosted by the Nebraska Alfalfa Marketing Assn., Buffalo County Fairgrounds, Kearney, NE. Contact Barb Kinnan at 800-743-1649 or nebalf@cozadtel.net.

Feb. 19 -- Kentucky Alfalfa Conference, Cave City Convention Center. E-mail glacefie@kyu.edu or raysmith1@uky.edu.

March 6-7 -- Joint Maryland Cattlemen's Convention/Central Maryland Hay & Pasture Conference, Four Points Sheraton, Hagerstown. Contact Scott Barao at 410-795-5309 or sbarao@marylandcattle.org or Les Vough, 301-405-1322 or vough@umd.edu.

June 21-23 -- American Forage & Grassland Council Annual Conference, Amway Grand Plaza Hotel, Grand Rapids, MI. Call 800-944-2342 or email info@afgc.org.




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